A hot wallet is cryptocurrency storage that stays connected to the internet. It holds private keys in a software environment accessible from a desktop, phone, or browser, allowing instant transactions. Hot wallets include mobile apps (Trust Wallet, MetaMask Mobile), browser extensions (MetaMask, Phantom), desktop applications, and exchange-hosted wallets. The advantage is speed and convenience. The risk is that an internet-connected device is always exposed to hacking, malware, and phishing. If someone gains access to the device or password, they can move the stored crypto immediately. Hot wallets are essential for everyday crypto transactions, DeFi participation, and trading. The standard practice is to keep only a working balance in a hot wallet and store the rest in cold storage.
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